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Another DAX change in outlook, but 12,600 is a big barrier


DAX Xetra (cash index)

The DAX has swung back higher once more as the market has gapped higher at the open today.

This comes after a solid bull candle yesterday and now means that the resistance of recent months between 12,600/12,647 is again under pressure.

Is this a move that the bulls can fully get behind now?

Well, that depends on how the market responds to this resistance band again.

It certainly is a positive response from the bulls to what had looked earlier this week to be a downside break that was gathering momentum.

Leaving support at 12,312 is now a key reaction low to watch.

It is interesting to see that momentum indicators that had been deteriorating are now turning round.

  • The bulls should though be cautious in that there is a gap open at 12,503 which is still likely to be filled.

On the hourly chart the momentum outlook is still uncertain, and the hourly RSI needs to push into the 70s to suggest positive momentum is growing.

  • There is a pivot around 12,465 that is a basis of support now.
  • The bulls will also note with interest the stalling of the initial jump higher around 12,600, whilst a close above 12,600 would be the highest close since early February.

 


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At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.